Captioning sponsored by wpbt this is n. B. R. Susie good evening everyone. Im susie gharib. Tom will be along a little later in the program. Fresh signs of a disconnect between what companies, and investors are seeing in the u. S. Economy. We preview the economic state of the union. Why regulators need to treat them like other business. Then u. S. Airways sees big benefits in merging with american airlines. We look at the new landscape for airlines if the deal goes through. We have that anmore tonight on nbr. President obama is preparing to deliver his first state of the Union Address of his new term, tomorrow. The American People will be listening carefully to his plans to grow the economy, especially as they struggle with less take home pay, and worries about their jobs. While there are signs of improvement in the economy, the Unemployment Rate rose in january to 7. 9 . So what is the current state of the economy . Erika miller talked to two experts with different views. Reporter it
Sentiment. That raises alarm bells. Reporter another immediate concern is the impact of higher payroll taxes, which could force some households to cutback spending. In addition, gasoline prices are rising. And if they hit the psychologically important 4 a gallon mark, many consumers could also pull back on shopping. And long term, federal budget problems remain one of the biggest hurdles to growth. The u. S. Is running an annual deficit of 1. 1 trillion. We still have some fiscal speed bumps coming. And then we have the question of what they actually do on the fiscal side. So, right now, the economy and the fiscal situation are wrapped up into one really nasty ball of wax. Reporter keep in mind that many of the International Problems that have existed for more than a year havent gone away. Slowing economies in europe and china could slow global growth. And conflict with iran could push up energy prices. Erika miller, n. B. R. , new york. Susie joining us now with more on what to expect
To grow the economy, especially as they struggle with less take home pay, and worries about their jobs. While there are signs of improvement in the economy, the Unemployment Rate rose in january to 7. 9 . So what is the current state of the economy . Erika miller talked to two experts with different views. Reporter it may seem strange to many investors that the stock market can be hovering at five year highs, when the economy is so weak. But whats fueling the rally is not the current situation, its hope. Weve taken out some of the downside tail risks. So, were feeling like although its not going to be a boomy year, at least it will be a year where we can reasonably expect that the economy will continue to, you know, make progress. Reporter he expects there will be a continued slow, but steady, fall in the Unemployment Rate. In addition, the Housing Market recovery is spreading. Weve seen a pickup in household formation. So, more people are moving out of homes, starting new families and
Sentiment. That raises alarm bells. Reporter another immediate concern is the impact of higher payroll taxes, which could force some households to cutback spending. In addition, gasoline prices are rising. And if they hit the psychologically important 4 a gallon mark, many consumers could also pull back on shopping. And long term, federal budget problems remain one of the biggest hurdles to growth. The u. S. Is running an annual deficit of 1. 1 trillion. We still have some fiscal speed bumps coming. And then we have the question of what they actually do on the fiscal side. So, right now, the economy and the fiscal situation are wrapped up into one really nasty ball of wax. Reporter keep in mind that many of the International Problems that have existed for more than a year havent gone away. Slowing economies in europe and china could slow global growth. And conflict with iran could push up energy prices. Erika miller, n. B. R. , new york. Susie joining us now with more on what to expect
Rebel stronghold of gau and sealed off the city of timbuktu. French cities won control of the major airports and roads in the area. Analyst warn militants could still mount guerrillastyle attacks from hideouts in the deserts and mountains. In ethiopia, African Union leaders have met to discuss the situation in mali. Theyre vowing to do more to help with the fight against islamist militants. Representatives of the unions 54 members gathered in the ethiopian capital, pledging 50 million to support troops from france and from across africa fighting islamist militants. They are linked to al qaeda and control a large part of the country. Made a commitment to pool our efforts together to assist this country. Representatives from japan, the u. S. And europe will discuss the situation with African Leaders later in the day. The japanese are expected to contribute 100 million in aid for refugees. A senior United Nations official says the needs of millions of syrians are growing as their countrys